A Healthy Occupation – Set Up a Clinic Business in India
There’s always room for business in the healthcare industry. 3E Accounting shows you how to set up a clinic business in India.
India’s healthcare industry is one of the largest, with an estimated growth rate of 20% annually. However, most residential areas outside of the major cities lack healthcare facilities. Almost 70% of the population live in rural areas which need tertiary healthcare. Deciding to set up a clinic business in India is a much-needed service and a wise business decision.
The Clinical Establishments (Registration and Regulation) Act provides for registration and regulation of all medical facilities in India. The Act states the type of infrastructure and drugs that are mandatory. To start a clinic business in India, you will need to consider what kind of structure appeals to you. This could be a clinic or a polyclinic.
A Clinic can be either general practice or a specialised one such as a dental or paediatric clinic. Clinics offer public healthcare services and are usually owned or run by a single medical practitioner. It is a great way to learn more about how to run a medical care facility. Practitioners acquire hands-on experience on patient care, and treatment, clinic management and the financial dynamics of the business itself.
A Polyclinic is a bit more complicated in structure and has dedicated medical departments. It is essentially a medical centre that offers more than a clinic but is smaller than a hospital. It has a variety of specialised medical practitioners (e.g. paediatrician, dentist, general practitioner, etc.). It also has an assortment of services (e.g. pathology testing, minor surgical procedures, etc.). A polyclinic offers patients convenient and more complete access to medical solutions. However, it does require additional financing as compared to a clinic.
Your business will need to be registered with the Ministry of Corporate Affairs or MCA. In the case of healthcare providers, the best option is a Limited Liability Partnership Firm (LLP). At least one or more partners will need to be licensed and registered medical practitioners.
The Integrated Goods and Services Tax Act 2017 has made certain types of healthcare business exempt from service tax registration. For a list of exemptions, check out the Indian government website.
Licenses and statutory regulations that are needed include:
- Medical Practitioner License from the Medical Council of India (MCI) Biomedical Management and Handling from the State Pollution Control Board
- Local Clinic Registration from the State Council
- Pharmacy Licence from the Indian Pharmacy Council
The following is a brief outline of things that you need to consider in general:
- Have a business plan – this will provide a guideline on running your business.
- Financial statement – do an assessment of your available and projected finances.
- Choose your location – define your target market and competition; your site should be easily accessible with high footfall’ rental should be affordable.
- Get financing – source out loan applications.
- Equipment and renovation – your clinic should have aesthetic appeal as well as functionality. Choose renovators with clinic experience. Keep the cost down by renting equipment.
- Get professional indemnity insurance – coverage against professional risks is essential.
- Employees – hire qualified professionals. Key roles include the Practice Manager, Head Nurse and a reliable administrator.
- Software – invest in apps, Electronic Health Record (EHR), Customer Management Systems (CMS) and billing software.
- Advertising – an excellent website to increase online presence and maximise footfall to your business.
It’s All in the Service
The healthcare industry has untapped potential for practitioners looking to set up a clinic business in India. The professionals at 3E Accounting can take care of all essentials such as company incorporation, licensing and even website design and development.
Contact 3E Accounting today to kickstart your business positively.